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Apr 01, 2023
Carter's Q1 2023 Earnings Report
Carter's exceeded its first quarter sales and earnings objectives.
Key Takeaways
Carter's, Inc. reported first quarter fiscal 2023 results, exceeding sales and earnings objectives. Net sales were $696 million, and diluted EPS was $0.95 ($0.98 adjusted). The company reaffirmed its full-year fiscal 2023 outlook, projecting net sales of $3.0 billion and adjusted diluted EPS of $6.15.
Net sales were $696 million.
Diluted EPS was $0.95; adjusted diluted EPS was $0.98.
Company reaffirms full year fiscal 2023 outlook with net sales of $3.0 billion and adjusted operating income of $350 million and adjusted diluted EPS of $6.15.
Returned $38 million to shareholders through share repurchases and dividends.
Revenue by Segment
Forward Guidance
For the second quarter of fiscal 2023, the Company expects net sales between $590 million and $605 million, adjusted operating income between $30 million and $35 million, and adjusted diluted earnings per share between $0.40 and $0.50. For fiscal year 2023, the Company is reaffirming its prior guidance and projects net sales of $3.0 billion, adjusted operating income of $350 million, and adjusted diluted earnings per share of $6.15.
Positive Outlook
- Improvement in demand trend as inflation moderates.
- Gross margin expansion, driven by lower transportation costs.
- Gross margin expansion, driven by improved price realization.
- Gross margin expansion, driven by favorable changes in channel mix.
- Comparable SG&A.
Challenges Ahead
- Shift of previously planned U.S. Wholesale demand from the second quarter to the first quarter of 2023.
- Continued inflationary pressure on consumer demand.
- Higher interest expense.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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